There is an endless search for an investment that produces high returns and involves minimal risk and effort.
The search continues for many, but few have ever found it.
My first boss and mentor had an embroidered plaque on his wall that said, “The turtle only gets ahead when he sticks his neck out!”
For many who took risks with real estate investments, their necks are sticking way out there.
However, in this economy, or anytime for that matter, it is best to deal with the economic realities and be pragmatic.
Wishful thinking is good, but as we age, we find that the tooth fairy does not come around anymore.
Most of would agree that the only folks that do not make mistakes are in cemeteries.
Many of us have made mistakes in our investment portfolios whether it is in stocks, bonds, a business, or real estate.
However, the quicker you look at where you are and where your investment is going, the better chance of recouping your losses.
In addition, some people who wish to sell their homes are locked into the philosophy that they cannot sell it until they get at least what they paid for it.
In the meantime, their lives are on hold and they may be in constant distress over their situation.
If you are thinking of selling your home and you are not upside down on the loan, it is time to do some homework.
Even though you might take a loss in value, you may get more home for your dollar in the community you wish to relocate.
There are beautiful homes available in other parts of Arizona for as little as $25 a square foot.
Personally, I like it better in the Rim Country than anywhere else, but family and personal circumstances sometimes compel change.
Do you want to put your life on hold?
You can gather facts online or from your local Realtor regarding information on where you wish to relocate.
You may have a great opportunity.
Recently, having observed some astute real estate investors, they have liquidated unprofitable real estate investments at a loss; however, they are reinvesting the remaining proceeds in other investment properties that generate positive cash flow.
In other words, for tax purposes they may write off the loss, obtain positive cash flow, and establish a new position for potential profits at a later date.
Ray Pugel is a designated broker with Coldwell Banker Bishop Realty, 715 S. Beeline Highway. Contact him at (928) 474-2216.